Tech services and digital technology firm Wipro will start a new innings on Monday under the leadership of its new Chief Executive Officer and Managing Director Thierry Delaporte.
Mr. Delaporte, 53, formerly the COO at French tech player Capgemini, will replace Abidali Neemuchwala, who bid adieu to Wipro on June 1. Mr. Delaporte will hold office for five years with effect till July 5, 2025 and will receive an annual pay package of around ₹ 37.9 crore ( €4.45 million) in stock compensation and other benefits.
A fortnight ago, Wipro said it would seek shareholders’ nod at its AGM scheduled on July 13, for the appointment of Mr. Delaporte.
Industry analysts said that this appointment showed Wipro’s intent to be become a multi-national company.
Peter Bendor-Samuel, CEO and founder of Everest Group said, “Thierry is an interesting choice for Wipro, signalling the company’s move to be a true multi-national and a global player, especially in these extremely challenging times.”
“Thierry faces many challenges as he assumes Wipro’s leadership, the most daunting amongst them is to get Wipro back on an industry-leading growth trajectory. To achieve this, he must increase accountability, and streamline decision-making,” said Mr. Bendor-Samuel.
As per Hansa Iyengar, principal analyst (Digital Enterprise Services) at London-based analyst firm Omdia, Mr. Delaporte’s main priority has to be restoring revenue growth and healthy margins for Wipro.
“He (Delaporte) also needs to ensure that Wipro makes all the right noises in the press and rebuilds its reputation as one of the leading ITeS companies. He has to improve employee morale, strengthen client relationships, reduce tech firm’s exposure to at-risk clients, and increase influence in the C-suite by helping clients navigate the disruption caused by COVID-19. He has a tough task ahead to get the company back on the growth track,” she said.
According to regulatory filings, Mr. Delaporte’s remuneration will include basic pay in the range of €1.07-1.4 million per annum and a target variable pay in the range of €1.7-2.5 million per annum. He will receive an expatriate allowance in the range of 428,000-550,000 “for assignments outside France and India”.
He will also receive RSUs or restricted stock units (annual stock grant and one-time RSU grant) and other perquisites and benefits. In addition to these, the Wipro chief executive will receive a one-time cash award of $3 million that will be paid in two tranches, with the first tranche of $1.5 million being payable on July 31, 2020, and the second a year later.